What is the consequence of Dryject delivering two or more notices of Material Breach within a twelve-month period?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
es Rights, or if You shall use at the Franchised Business any names, marks, e-marks, systems, insignias, symbols or copyrights
not authorized by Us;
- (iii) Consistently (e.g. twice or more in any twelve (12) month period) fail or refuse to submit when due any financial statement, tax return or schedule, or to pay when due the Royalty Service Fees or any other payments or to submit any required reports due to Us;
- (iv) Intentionally underreport Gross Revenues in any amount or negligently underreport Gross Revenues by five percent (5%) or more during any reporting period;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if a franchisee consistently fails or refuses to submit financial statements, tax returns, schedules, royalty service fees, other payments, or required reports when due (twice or more in any 12-month period), Dryject can deem the franchisee in material breach of the agreement.
In such a case, Dryject has the option to terminate the Franchise Agreement and all rights granted under it. This termination becomes effective immediately after the franchisee receives written notice of termination. The franchisee is not provided any opportunity to cure the breach in this specific instance.
This policy highlights the importance of franchisees maintaining diligent and timely compliance with all reporting and payment obligations outlined in the Franchise Agreement. Failure to do so can result in the immediate loss of the franchise.